gloom overdone: forecaster, page-12

One of the main problems is that the planning process is very slow to release new land and adds dramatically to the final cost.

Not only release of new land, but development of existing land or houses is very restrictive.

By strangling supply in this way and increasing the influx of people you are ensuring that the equation will remain out of balance.

One thing that the Federal government is doing is structuring the immigration points system in such a way to make it easier for immigrants who agree to live in cities other than Melbourne or Sydney for a period of years.

I would push that further and give them incentive to settle in regional towns to take more pressure of major capitals.

Of course infrastructure and jobs need to be in place to make this work so none of this can be a short term fix. It has taken our successive governments and town planners about 40 years to mess this up so we won't be fixing it in a quick way.

In the meantime whilst supply is choked and demand is pushed up, property prices will remain supported.

Watch for changes to freeing up the planning approval processes and/or social changes in the number of person's per household. Watch for a push to new towns.

Those will be your signs that things are changing but until you see these things not much can change.